Owner Derek Bell poses at Plato's Closet in Danbury, Conn. Thursday, July 17, 2014. The used clothing store located in the Berkshire Shopping Center is currently buying used clothes in preparation for the store's Aug. 17 grand opening.

Sierra Joyce, left, 14, and her sister Shannon Joyce, center, 17, stop by to sell their used clothes to employee Valerie Szabo at Plato's Closet in Danbury, Conn. Thursday, July 17, 2014. The used clothing store located in the Berkshire Shopping Center is currently buying used clothes in preparation for the store's Aug. 17 grand opening.

Shoes, clothing and accessories are displayed at Plato's Closet in Danbury, Conn. Thursday, July 17, 2014. The used clothing store located in the Berkshire Shopping Center is currently buying used clothes in preparation for the store's Aug. 17 grand opening.

Employees Joe'vana Johnson, left, Jessica Aguilar, center, and Jessica Chimbo sort through and label used clothing at Plato's Closet in Danbury, Conn. Thursday, July 17, 2014. The used clothing store located in the Berkshire Shopping Center is currently buying used clothes in preparation for the store's Aug. 17 grand opening.

Owner Derek Bell poses at Plato's Closet in Danbury, Conn. Thursday, July 17, 2014. The used clothing store located in the Berkshire Shopping Center is currently buying used clothes in preparation for the store's Aug. 17 grand opening.

Women's shoes and a colorful line of shirts are displayed on the racks at Plato's Closet in Danbury, Conn. Thursday, July 17, 2014. The used clothing store located in the Berkshire Shopping Center is currently buying used clothes in preparation for the store's Aug. 17 grand opening.

Owner Derek Bell, right, talks with a customer at Plato's Closet in Danbury, Conn. Thursday, July 17, 2014. The used clothing store located in the Berkshire Shopping Center is currently buying used clothes in preparation for the store's Aug. 17 grand opening.

Employee Nicolette Calderon sorts through used clothing at Plato's Closet in Danbury, Conn. Thursday, July 17, 2014. The used clothing store located in the Berkshire Shopping Center is currently buying used clothes in preparation for the store's Aug. 17 grand opening.

The fifth Plato's Closet in Connecticut, the store will offer "gently used" merchandise, said franchise owner Derek Bell, adding that the store is paying cash for items that people bring to the store.

"We are buying guys' and girls' clothing. We cater to the 13- to 24-year-old crowd. American Eagle, Charlotte Russe, Forever 21 and Cotton On are big brands for us," said Bell, a Stamford resident. "People are coming in with their gently used items. We have to reject a decent amount -- things that are overly loved and other styles."

The store, which has 14 employees, has a selling floor of 3,200 square feet and resembles the other four Plato's Closet stores in Enfield, Orange, South Windsor and Wethersfield. They are part of Winmark Corp., developer of franchise-owned and operated business opportunities.

A Once Upon A Child store, which offers clothing for babies and young children, is in the Berkshire Shopping Center, and it a played a role in Bell's decision to locate there.

"Once Upon a Child has been there 16 years. People understand the concept," said Bell, who investigated several franchise opportunities before settling on Plato's Closet, which has nearly 400 locations across the United States.

A discussion with his sister, who has shopped at a Once Upon a Child store in Florida, helped sway him. Bell said he was impressed by Winmark's franchise business strategy.

"We (Bell and his father Bill) started looking in southern Fairfield County, but rents were astronomical. I used to live in Monroe when I was in high school, and I'd come to Danbury quite a lot," said Bell, who believes his store will fit the demographic makeup of the area.

"The younger generation is extremely conscious about labels but are light in their pockets in terms of cash," he said. "I have a 15-year-old son who only wears certain brands of clothes. I think there's definitely a market."

Little competition

Janet Falkenthal, owner of The Fashion Exchange, a consignment store in Newtown, said she knows about the arrival of Plato's Closet and its business strategy but does not see it as a direct competitor.

"I'm not sure whether it will be competition," said Falkenthal, commenting that her store caters to a slightly older audience. "They want young people's labels. My clientele is 30 and up."

The Fashion Exchange also accepts clothing on a traditional consignment basis, compared with the direct payment process that Plato's Closet employs.

Falkenthal said she closed her Danbury store 1 1/2 years ago after realizing that the burden of running two stores was too difficult, but she did not cite competition.

A number of other Danbury consignment stores also have closed. Calls made to a half-dozen stores were answered by a recording saying the number is no longer in service.

Goodwill of Western and Northern Connecticut, based in Bridgeport, operates a store and donation center at 165 Federal Road in Brookfield and 2 Beaver Brook Road in Danbury, and welcomed Plato's.

"Goodwill of Western and Northern Connecticut welcomes and supports all new businesses in the community," said agency spokeswoman Melissa Cwiertniewicz in a statement. "As a non-profit organization that provides job training programs and community-based services, we know the importance of a strong local economy to residents."

Plato's Closet has developed a reputation across the state as a popular place to make a smart purchase and should do well in Danbury, if its other locations are any indication, according to Tim Phelan, president of the Connecticut Retail Merchants Association in Hartford.

"Plato's Closet is a great Connecticut retailer," he said. "They are franchised and therefore are owned and operated, for the most part by Connecticut residents. It's a first rate retailer, and they (franchisees) have created a niche for themselves by offering a unique method of dealing with customers and have great customer services. They offer customers another alternative for the clothes they no longer need."